Slide 1: Q1 Earnings Presentation, May 2, 2024
Q1 EARNINGS PRESENTATION — MAY 2, 2024 — ‘ =.
Slide 2: (iv) segment EBITDA and adjusted segment EBITDA, 6 February 2023
(iv) segment EBITDA and adjusted segment EBITDA, 6 February 2023
Slide 3: Today's Presenters
TODAY’S PRESENTERS | CLARUS | ~AA Warren Kanders Mike Yates Neil Fiske Mat Hayward EXECUTIVE CHAIRMAN CFO PRESIDENT MANAGING DIRECTOR Clarus Clarus Black Diamond Equipment Adventure
Slide 4: The New Clarus: Q1 2024
THE NEW CLARUS: Q1 2024 CLARUS. Positioned for long-term growth > as pure-play outdoor business Q1 execution consistent with strategic objectives Black Diamond Objective: > Cathedral specialty, regional and national wholesale Simplify and focus on the core accounts stabilizing; SKU rationalization o
Slide 5: Q1 2024 revenue and EBITDA highlights
Revenue Adventure Revenue Outdoor Revenue Adj. Gross Margin Adj. EBITDA - 1 % Y/Y + 27% Y/Y - 11% Y/Y + 60 BPS Y/Y + 76% Y/Y Adventure Outdoor Adj. EBITDA: Adj. EBITDA: $1.9m $2.9m
Slide 6: Adventure - Strategic Priorities: Q1 2024 Highlights
ADVENTURE - STRATEGIC PRIORITIES: Q1 2024 HIGHLIGHTS [UII soventure BUILDINGS BLOCKS IN FOCUS INVESTMENT INTO U.S. MANAGEMENT COMMENTARY * Q12024 represents first phase of our 3-year strategic plan * Sales increased 27% supported by two primary drivers: 1. In Wholesale, strong key account performanc
Slide 7: Outdoor - Strategic Priorities: Q1 2024 Highlights
OUTDOOR - STRATEGIC PRIORITIES: Q1 2024 HIGHLIGHTS BUILDINGS BLOCKS IN FOCUS SIMPLIFICATION EXECUTION MANAGEMENT COMMENTARY . Strategic initiatives beginning to yield incremental near-term benefits, driving Q1 results in line with expectations North American wholesale channel grew 10% y/y Continued
Slide 8: Q1 2024 Financial Results
Q1 2024 FINANCIAL RESULTS CLARUS. * 2024 guidance reaffirmed based on Q1 execution and in-line results
Slide 9: 2024 Guidance
2024 GUIDANCE CLARUS | * Consistent with historical seasonal pattern, Q2 decelerates versus Q1 * Q2 guidance: net sales between $58-$62 million; adj. EBITDA between $0-$0.5 million PAGES
Slide 10: Appendix
APPENDIX
Slide 11: Condensed Consolidated Balance Sheets
CLARUS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except per share amounts) March 31, 2024 December 31, 2023 Assets Current assets Cash $ 47,484 $ 11,324 Accounts receivable, less allowance for credit losses of $1,394 and $1,412 51,954 53,971 Inventories 88,630 91,4
Slide 12: Condensed Consolidated Statements of Income
CLARUS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2024 March 31, 2023 Sales Domestic sales $ 28,284 $ 24,197 International sales 41,027 46,081 Total sales 69,311 70,278 Cost of goods sold 44,460 44,770 Gro
Slide 13: Reconciliation from Gross Profit to Adjusted Gross Profit and Margin
CLARUS CORPORATION RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN THREE MONTHS ENDED March 31, 2024 March 31, 2023 Sales $ 69,311 Sales $ 70,278 Gross profit as reported $ 24,851 Gross profit as reported $ 25,508 Plus impact of PFAS inventory reserve 729 Plus imp
Slide 14: Reconciliation to Adjusted Income from Continuing Operations and EPS
CLARUS CORPORATION RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED (LOSS) INCOME FROM CONTINUING OPERATIONS AND RELATED EARNINGS PER DILUTED SHARE (In thousands, except per share amounts) Three Months Ended March 31, 2024 Total Gross Operating Income tax Tax Loss from Diluted sales p
Slide 15: Reconciliation to EBITDA and Adjusted EBITDA
CLARUS CORPORATION RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA (In thousands) Three Months Ended March 31, 2024 March 31, 2023 Loss from continuing operations $ (6
Slide 16: Reconciliation to Segment EBITDA and Adjusted Segment EBITDA
CLARUS CORPORATION RECONCILIATION FROM OPERATING LOSS TO SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA (In thousands) Three Months Ended March 31, 2024 Outdoor Adventure Corporate Segment Segment Costs Total Operating loss $ (1,711) $ (770) $ (4,293) $ (6,774) Depreciation 673 353 - 1,026 Amortization